According to Jinshi, Dr. Cyrus de la Rubia, chief economist of Hamburg Commercial Bank, commented on the Eurozone PMI: The data looks very good. Service providers have expanded their activities for the third consecutive month, ending the lack of vitality observed in the second half of last year. The pace of employment growth has accelerated, consistent with the growth of new business and the growth of order volume, which is the strongest growth in 11 months.
These trends point to growing optimism among service providers, further strengthened by business expectations, which are now well above the average of the past two years. The PMI index measuring operating costs in the services sector, which mainly includes unit labor costs, continued to rise rapidly over the past 12 months. The ECB recognizes this trend and is likely to be cautious in the extent of its interest rate cuts.